Assume That B =

question 8

Essay

Assume that b = .75 and autonomous investment increases by $500 billion.By how much does equilibrium income increase? How much would this increase in investment increase income if b = .80 instead?

Comprehend the concepts of capitalism, socialism, and political systems in a global context.

Recognize forms of individual and collective resistance in the workplace.

Understand the dynamics of the global commodity chain and its impact on global economy.

Analyze the role of information technology in transforming work, economy, and society.

---

Definitions:

Economic Efficiency

A state where resources are allocated in the most effective way possible, maximizing output without wasting any inputs, ensuring that goods and services are produced at the lowest possible cost and distributed to those who value them most.

Deregulation

The process of removing or reducing government controls and restrictions in an industry to allow for more competition and efficiency.

Pork-Barrel Politics

The allocation of government spending for localized projects secured primarily to bring money to a representative's district, often without proper consideration of the benefits or costs.

Principal-Agent Problem

The principal-agent problem occurs when there is a conflict of interest between a principal (owner or shareholder) and an agent (manager or executive) due to differing goals, with the agent potentially making decisions that benefit themselves at the expense of the principal.